"China is a $20 billion vehicle market opportunity. We can't ignore that," said Sona Comstar's Sunjay Kapur.
30 Sep 2024 | 1582 Views | By Prerna Lidhoo
While innovation and localization are crucial to industry growth, the global market's dynamics—particularly China—cannot be overlooked, Sunjay Kapur, Chairman of Sona Comstar, said. "China is a $20 billion vehicle market opportunity. We can't ignore that," Kapur noted, underscoring that country's continued dominance in the automotive space despite ongoing geopolitical challenges.
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While innovation and localization are crucial to industry growth, the global market's dynamics—particularly China—cannot be overlooked, Sunjay Kapur, Chairman of Sona Comstar, said. "China is a $20 billion vehicle market opportunity. We can't ignore that," Kapur noted, underscoring that country's continued dominance in the automotive space despite ongoing geopolitical challenges.
Sona Comstar has rapidly positioned itself as a leading player in the shift toward cleaner, smarter vehicles. With an ambitious plan to invest Rs 1,200 crore over the next three years, the company is aligning its future with the growing demand for electric vehicles (EVs) and advanced technologies like ADAS (Advanced Driver Assistance Systems) and telematics. But even as it builds this future, Kapur remains realistic about the global landscape. “This notion of 100% localisation is not the right way to go,” he cautioned, arguing that a balanced approach is essential to maintaining competitiveness.
While India is making strides toward greater self-reliance through initiatives like the Production Linked Incentive (PLI) scheme, which Sona Comstar has leveraged to bolster its EV component offerings, China’s presence in the market remains too significant to bypass, he adds. "It has to be a balance of both," he said.
Sona Comstar allocates between 3.5% to 6% of its revenue to R&D—well above the industry average. "We're a technology company, not just an auto component company," Kapur asserted.
He sees the current correction in global EV demand as a strategic opportunity. "When cycles come, it's a good time to reassess, build efficiencies, and put up capacity for the future," he says. For Kapur, the focus remains on long-term sustainability. "We're not a quarter-to-quarter business. We're a long-term business, and the way to sustain this is by embracing disruption and making the necessary investments today."
Despite challenges like high battery costs and infrastructure gaps, he is optimistic about the future of EVs. "Electrification is here to stay. We want to move toward a net-zero carbon footprint, and infrastructure will get built out. We're on the right path," he said, stressing that the full potential of EVs will be unlocked as infrastructure improves and battery prices fall.